CORRECTED-US STOCKS-S&P 500 ekes out all-time closing high as Fed minutes eyed

Reuters
02-19
CORRECTED-US STOCKS-S&P 500 ekes out all-time closing high as Fed minutes eyed

Refiles to correct first paragraph and third paragraph

Constellation Brands jumps after Berkshire discloses stake

Intel up after report Broadcom, TSMC eye deals to split it

Fed's January meeting minutes due on Wednesday

By Stephen Culp

NEW YORK, Feb 18 (Reuters) - Wall Street on Tuesday closed with a record high at the top of a holiday-shortened week, with earnings season winding down U.S. Federal Reserve minutes in the wings and geopolitical uncertainties churning in the background.

The three major stock indexes wobbled between red and green for much of the session.

"There's a little bit of a three-day weekend hangover today," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "There's just truly not a lot going on, which kind of a nice change as we simply consolidate right beneath potential new all-time highs."

"At the same time we have the Fed minutes, coming out tomorrow and big retail earnings also coming out later this week," Detrick added. "But when you put it all together, you have a day like today where it's just kind of 'wait-and-see.'"

On Wednesday, the U.S. Federal Reserve is expected to release the minutes of its January policy meeting, at which the voting members elected to let interest rates stand amid signs of an inflation rebound and the unknown extent and effects of President Trump's threatened tariffs.

Remarks from U.S. Federal Reserve policymakers largely adhered to the same script, with Philadelphia Fed President Patrick Harker, Governors Michelle Bowman and Christopher Waller saying they believe economic strength and elevated inflation warrant holding the policy rate steady for the time being.

San Francisco Fed President Mary Daly reiterated that a pause in rate cuts is appropriate until more visible progress is made toward bringing inflation down to the Fed's 2% goal.

The minutes will be scrutinized for clues regarding the central bank's path forward, particularly in light of recent data, which shows price growth gaining momentum, falling consumer sentiment and weaker-than-expected retail sales.

"The Fed is being reasonably transparent here," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "There's been evidence that the economy is slowing down a little bit and I'm sure they're watching that. But I don't think they feel significant pressure, at least at this point, to drop rates anytime soon."

According to preliminary data, the S&P 500 .SPX gained 14.99 points, or 0.25%, to end at 6,129.49 points, while the Nasdaq Composite .IXIC gained 14.15 points, or 0.07%, to 20,040.92. The Dow Jones Industrial Average .DJI rose 6.79 points, or 0.02%, to 44,556.34.

Fourth-quarter earnings season has come around the final bend, with 383 companies in the S&P 500 having reported as of Friday. Of those, 74% have posted better-than-expected results, according to LSEG data.

Analysts currently see fourth-quarter S&P 500 earnings growth of 15.3% year-on-year, up from the 9.6% estimate as it stood on Jan. 1.

Intel INTC.O advanced after a report over the weekend said rivals Taiwan Semiconductor Manufacturing Co. 2330.TW and Broadcom AVGO.O were considering potential deals that could split the chipmaker in two.

Constellation Brands STZ.N jumped after Warren Buffett's Berkshire Hathaway BRKa.N disclosed a new investment in the company on Friday.

Meta Platforms META.O lost ground, snapping its 20-session winning streak.

Inflation gauges https://reut.rs/4bd98e0

(Reporting by Stephen Culp; Additional reporting by Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Aurora Ellis)

((stephen.culp@thomsonreuters.com; 646-223-6076;))

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